Crypto Market Sees Shifts in Ownership and Regulation

The cryptocurrency market is experiencing significant shifts in ownership and regulation, with major developments in the past week that could have far-reaching implications for the industry.

A 9.8% shareholder of Empery Digital, a company that holds over 4,000 Bitcoins in its treasury, has demanded that the company sell its Bitcoin holdings and return capital to investors. The shareholder has also called for the removal of the company's CEO and board, citing a lack of confidence in their ability to manage the company's assets. This move has sparked concerns about the stability of Empery Digital and the potential impact on the broader cryptocurrency market.

Meanwhile, Canaan, a leading Bitcoin mining company, has acquired Cipher Mining's 49% stake in three West Texas mining projects for $39.75 million in shares. This deal gives Cipher a significant equity stake in Canaan and marks a major expansion of the company's mining operations in the United States. The acquisition includes three fully operational mining projects with a combined power capacity of 120 MW and a total hashrate of 4.4 EH/s.

The deal is seen as a strategic move by Canaan to integrate low-cost power with high-performance computing, and it is expected to enhance the company's competitiveness in the global mining market. The acquisition also includes 6,840 Avalon A15Pro-AVG-221T mining rigs, which were originally purchased from Canaan in mid-2025.

In a separate development, the Federal Reserve has proposed a rule that could prevent further crypto debanking. The proposed rule would scrap the "reputation risk" factor from Fed oversight, which is believed to have contributed to the debanking of crypto insiders and firms. The move is seen as a positive development for the cryptocurrency industry, which has faced challenges in accessing traditional banking services.

The proposed rule would stop supervisors from pushing bankers to sever ties with politically disfavored businesses, including those in the cryptocurrency sector. The move is open for a 60-day public comment period, and it is expected to have a significant impact on the industry if implemented.

The developments in the cryptocurrency market come at a time of increasing scrutiny and regulation of the industry. The proposed rule by the Federal Reserve is seen as a positive step towards creating a more favorable regulatory environment for cryptocurrencies, while the acquisition by Canaan and the demands from Empery Digital's shareholder highlight the ongoing challenges and opportunities in the industry.

Sources:

• Empery Digital shareholder demands sale of 4,000-plus Bitcoin treasury, resignations
• Bitcoin Miner Canaan Acquires Cipher’s Stake in Texas Mining Projects, Expands AI and Power Strategy
• Fed proposes rule to deal with crypto debanking by scrapping 'reputation risk'